wsj_0695.xml
WSJ891030-0045
WSJ891030-0045
=
891027
=
891027
891030-0045
.
891030-0045
.
Business
Brief
--
Rally
's
Inc.
:
@
Investor
Group
Is
Seeking
@
More
Than
50
%
of
Stock
Business
Brief
--
Rally
's
Inc.
:
@
Investor
Group
Is
Seeking
@
More
Than
50
%
of
Stock
10/27/89
10/27/89
10/27/89
WALL
STREET
JOURNAL
(
J
)
WALL
STREET
JOURNAL
(
J
)
GPO
RLLY
GPO
RLLY
TENDER
OFFERS
,
MERGERS
,
ACQUISITIONS
(
TNM
)
TENDER
OFFERS
,
MERGERS
,
ACQUISITIONS
(
TNM
)
A
group
of
investors
led
by
Giant
Group
Ltd.
and
its
chairman
,
Burt
Sugarman
,
said
it
filed
with
federal
antitrust
regulators
for
clearance
to
buy
more
than
50
%
of
the
stock
of
Rally
's
Inc.
,
a
fast-food
company
based
in
Louisville
,
Ky
.
Rally
's
operates
and
franchises
about
160
fast-food
restaurants
throughout
the
U.S.
.
The
company
went
public
earlier
this
month
,
offering
1,745,000
shares
of
common
stock
at
$
15
a
share
.
Giant
has
interests
in
cement
making
and
newsprint
.
The
investor
group
includes
Restaurant
Investment
Partnership
,
a
California
general
partnership
,
and
three
Rally
's
directors
:
Mr.
Sugarman
,
James
M.
Trotter
III
and
William
E.
Trotter
II
.
The
group
currently
holds
3,027,330
Rally
's
shares
,
or
45.2
%
of
its
commmon
shares
outstanding
.
Giant
Group
owned
22
%
of
Rally
's
shares
before
the
initial
public
offering
.
A
second
group
of
three
company
directors
,
aligned
with
Rally
's
founder
James
Patterson
,
also
is
seeking
control
of
the
fast-food
chain
.
It
is
estimated
that
the
Patterson
group
controls
more
than
40
%
of
Rally
's
stock
.
Rally
officials
were
n't
available
to
comment
late
yesterday
.
For
the
year
ended
July
2
,
Rally
had
net
income
of
$
2.4
million
,
or
34
cents
a
share
,
on
revenue
of
$
52.9
million
.